Chile launches programme to shore up FX holdings
Central bank aims to increase reserves by 40% and reduce role of foreign currency credit lines
The Central Bank of Chile (BCCh) has vowed to increase its international reserves by 40% in an attempt to shift its foreign exchange liquidity composition away from credit lines.
The BCCh announced that, from August 8, it would purchase up to $25 million worth of foreign currency through the official FX market every day over the next three years. This would amount to a maximum of $18.5 billion worth of FX over the programme’s duration.
“The goal is to gradually replace part of the current foreign
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